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Ronald Reagan Reaganomics

September 14, 2018IN HIS WORDS

Reagan and His Four Pillars of Reaganomics

Like any sturdy building, the Ronald Reagan Reaganomics plan was built on four strong pillars. These goals served as the cornerstones for the policies and programs put in place during Reagan’s time in office, and as a guidebook for future generations looking to emulate the success of the economic approach.

The revolutionary nature of Ronald Reagan Reaganomics has been heralded for decades. The Heritage Foundation called the plan the “most serious attempt to change the course of U.S. economic policy of any administration since the New Deal.” To fully appreciate just how much the strategy affected the country, it’s important to first dive into those four pillars upon which Ronald Reagan Reaganomics was built:

1.Reduce government spending: Reagan was able to reduce federal spending from 4 percent during the Carter administration to 2.5 percent by the time he left office. He did so by cutting wasteful spending and government overreach that enabled him to reduce overall spending while still increasing vital defense budgets.

2.Reduce tax rates: This aim was among the most substantial changes ushered in by Ronald Reagan Reaganomics. According to the Library of Economics and Liberty, Reagan reduced the individual tax rate for the top margins from 70 percent to 28 percent and the corporate rate from 48 percent to 24 percent.

3.Reduce regulation: In an effort to reallocate spending and ensure individual rights weren’t being trampled by government influence, Reagan reduced federal regulations in a range of industries, including telecommunications, transportation and banking.

The trickle-down mission at the heart of Ronald Reagan Reaganomics has again been in the news in recent months as the current administration seemingly adopts some aspects of Reagan’s successful economic plans into its own strategies. These four pillars can serve as a roadmap for modern and future political leaders looking to bring economic revitalization back to the country.

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